What is a budget? How is it used by a business firm?
What will be an ideal response?
A budget is a financial statement that projects income, expenditures, or both over a specified future time. Once executives and employees develop a firm's goals and objectives, the next step is to construct a budget that projects the costs the firm will incur and the sales revenues it will receive during a specific time period. Budgeting for a business often begins with the construction of departmental budgets for sales and various types of expenses. Then individual budgets can be combined into a company-wide cash budget. For major expenditures and long-term financing needs, a firm can also construct a capital budget.
You might also like to view...
When Staples introduced a new $69.99 paper-shredding device called the MailMate in 2006 by striking a two-episode deal with NBC's popular television program, The Office, it was using product placement
Indicate whether the statement is true or false
Project feasibility includes all of the following except
a. technical feasibility b. conceptual feasibility c. operational feasibility d. schedule feasibility
Which of the following is the assignment process used with normal costing?
A) Actual direct materials, actual direct labor and actual overhead cost are assigned to products. B) Actual direct materials cost is assigned to products, but direct labor and overhead costs are assigned using predetermined rates. C) Actual direct labor cost is assigned to products, but direct material and overhead costs are assigned using predetermined rates. D) Actual direct material and direct labor costs are assigned to products, but overhead costs are assigned using predetermined rates. E) all manufacturing costs are assigned using predetermined rates
The socialization form, ____________ is explained as information regarding the activities and tasks they may be expected to carry out, and the time each activity should take to complete.
a. Context b. Social dynamics c. Content d. Components